Reference no: EM132899510
Questions -
Q1. The company had the following items incorrectly classified:
Demand deposit P200,000 [classified as Current assets: Deposits to guarantee performance]
Customer NSF check - 15,000 [classified as Current assets: Cash in Bank]
Cash on hand awaiting deposit at bank - P35,000 [classified as Noncurrent assets: Investments]
If total current assets prior to any correction is P895,000, then how much is total current assets, as corrected?
Q2. The P1,563,000 Cash and Cash Equivalent balance at December 31, 2020 included the following items:
Postal money order - P12,000
Imprest petty cash fund amount (vouchers in the amount of P2,560 still in petty cash box) - P10,000
Cash in A Bank, net of P20,000 overdraft in another account at A Bank - P478,000
Treasury note maturing on February 1, 2021 purchased on October 1, 2020 - P36,000
Company check in payment of a vendor, delivered on January 10, 2021 - P40,000
How much is the correct cash balance at December 31, 2020?
Q3. The company has established an imprest petty cash fund in the amount of P15,000. At the end of the month, immediately prior to replenishment, the following were found: (a) currencies and coins total P4,876; (b) petty cash receipts total P4,790; and (c) employee's check returned by bank, marked NSF in the amount of P1,200.
How much is the cash shortage or overage? If your answer is cash overage, for example, write +1,000. If your answer is cash shortage, for example, write -1,000.
Q4. The company has established an imprest petty cash fund in the amount of P10,000. Based on a surprise cash count done today, the petty cash box contains (a) receipts totalling P3,080, which includes a P150 receipt for the purchase of postage stamps for use this month and payment for other expenses; (b) P60 worth of unused postage stamps; and (c) currencies and coins. The petty cash custodian volunteered the information that she got P500 of coins and currencies from the petty cash fund to buy her boss a personal thank you gift.
How much is the 'actual' currencies and coins, prior to replenishment?
Q5. ?The company has established an imprest petty cash fund in the amount of P10,000. Based on a surprise cash count done today, the petty cash box contains (a) receipts totalling P3,080, which includes a P150 receipt for the purchase of postage stamps for use this month and payment for other expenses; (b) P60 worth of unused postage stamps; and (c) currencies and coins. The petty cash custodian volunteered the information that she got P500 of coins and currencies from the petty cash fund to buy her boss a personal thank you gift.
If net income is P433,000 prior to replenishment, then how much is the net income after replenishment and adjusting entries?